Economist: Bets on low market volatility went spectacularly wrong

Posted February 8, 2018byKaren Firestone

Here is an article from The Economist that details the dangers of structured products, such as Credit Suisse’s XIV which collapsed spectacularly last week. Banks like to sell these products to institutional and high net worth clients because they generate fees for the banks and often times are not well understood by the clients – as was likely the case with the XIV.